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How do you calculate the debits and credits for these accounts? Exercise 9-21A Complete the accounting cycle using long-term liabilitiy transactions (LO9-2, 9-8) (GL) On
How do you calculate the debits and credits for these accounts?
Exercise 9-21A Complete the accounting cycle using long-term liabilitiy transactions (LO9-2, 9-8) (GL) On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Debit $ 11,900 35,400 152,700 74,300 127,000 Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $ 2,500 10,300 25,400 207,000 156,100 $401,300 $401,300 During January 2021, the following transactions occur: January 1 Borrow $107,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,069 are required at the end of each month for 60 months. January 4 Receive $31,700 from customers on accounts receivable. January 10 Pay cash accounts payable, $18,000. January 15 Pay cash for salaries, $29,600. January 30 Firework sales for the month total $200,000. Sales include $65,700 for cash and $134,300 on account. The cost of the units sold is $116,000. January 31 Pay the first monthly installment of $2,069 related to the $107,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $25,000. b. Unpaid salaries at the end of January are $26,800. C. Accrued income taxes at the end of January are $8,700. d. $19,013 of the long-term note payable balance will be paid over the next year. e. The company estimates and records bad debt expense (and adds to the Allowance account through this journal entry) at the end of each month. At the end of January, the company determines that determines $3,700 of the total Accounts Receivable account is over 90 days old, with the remaining A/R balance being current (Hint use the A/R balance in the General Ledger Tab). 50% of the A/R older than 90 days is estimated to be uncollectible, and 4% of the current balance is estimated to be uncollectible. Please calculate the amount that needs to be added to the Allowance account and Bad Debt Expense and complete the journal entry. (Watch video tutorial on this subject: https://vimeo.com/calvideo/review/254531867/7c9cc2a218) Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheetStep by Step Solution
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